We Expect a Technical Correction of ETH/USD

Technical indicators:

Market Cap, billion: $56,70

% chg. over the week: -17.85

52 wk range: 201 – 1420

Since the beginning of this month, there were aggressive sales on ETH / USD. During this period, Ethereum lost in price more than 35%. Nevertheless, technical correction is not excluded in the near future. At the moment, a quite strong reversal formation, the price and MACD divergence, has been formed. Cryptocurrencies are supported by the news that G20 countries will not prohibit the trading of digital currencies. Today the ETH/USD quotes on the Bitstamp exchange, which is based in Luxembourg, are testing the mark of $575.

The current technical pattern on ETH/USD

Support levels: 520.00, 460.00, 400.00

Resistance levels: 600.00, 680.00, 800.00

At the moment, the bullish sentiment is prevailing on ETH/USD. The key support and resistance levels are: 520.00 and 600.00, respectively. The MACD histogram is located in the positive zone and continues to rise, which indicates the power of buyers.

Ethereum has the potential for further recovery. We recommend looking for entry points to the market to open long positions.

Trading recommendations

If the price fixes above the round level of 600.00, the ETH/USD correction is expected. The immediate goal of profit taking is a “mirror” resistance of 680.00. In the medium term, the trading instrument may reach 800.00. When following the positions, we recommend using a trailing stop.

Alternative option. If the price fixes below the support level of 520.00, it is necessary to consider sales of ETH/USD. The movement is tending potentially to 460.00-400.00.

by
JustForex,
2018.03.21

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.